Indian met coke prices edge down on competitive imported offers

Indian met coke prices remain drop down w-o-w at INR 33,000/t as against at INR 34,000-35,000/t ex Jajpur assessed last week. The prices have dropped amid competitive imported prices.

India imported about 3.6 million tonnes (mnt) of coke in financial year 2023 (FY23). Imports in June rose 103% m-o-m at 0.5 mnt against 0.23 mnt in May, as per data from CoalMint. Met coke production in June stood at 3.97 mnt, including 0.22 mnt by merchant players.

Imported coke prices

Chinese met coke prices continue to rise despite reluctance by steelmakers to accept the third round of price rise, while smaller merchant cookeries have proposed fourth round of price hike by about yuan 100-110/t. The third round of price uptick was accepted by major steel makers in Hebei region on 27th July. Most of the mills have low inventory and are hence may have to accept the price uptick to keep their production schedule. Prices were raised in response to an increased steel demand in China. China's met coke prices are at $320/t (INR 26,325) CNF India.

Coking coal offers

Australian premium hard coking coal (PHCC) prices remained majorly stable on weekly basis at $237/t FOB yesterday (27 July). Prices remained unchanged on muted trade and buyers remained on the sidelines. Several cargoes are available at trader's hands however, end users are not in hurry to procure. Lower grades of Australian coal were available in ample quantity across August and September loading period exerting pressure on the prices.

Pig iron market

Indian pig iron prices have been majorly stable w-o-w. Pig iron prices recorded at INR 39,700/t yesterday as against INR 39,600/t last week. Prices have increased d-o-d from INR 39,400/t assessed a day ago.

Outlook

Amid better domestic offers, met coke producers may reduce offers in the near term. However, amid reducing margins merchant cookeries are hesitant in price cuts. The rising Chinese met coke prices may provide impetus to Indian met coke prices.